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Saturday, December 22, 2012

SPX is still affected by the "cliff" drama but managed to gain a few good points this week. What is noticeable on weekly chart is that the DMI has turned positive. This is a pretty good indication that the long term has turned, once again, bullish. Occasionally, weekly DMI can give a "whip-saw" but let's hope is not going to be the case here.

Daily chart shows pretty convincing higher highs and higher lows. Also notice that SPX is now above a flat SMA 50 and also above rising SMA 200. A "death cross" seems unlikely at this point.

The two hour chart also looks bullish despite Friday's move down. We have a bullish EMAs crossing and SMA 120 started rising. The most "damage" bears managed to do is pushing SPX slightly bellow EMA 50 but SMA 120 was not challenged since SPX moved above it (1,410).

Precious metals went down this week and the DMI has turned negative, both daily and weekly. Gold seems to be stuck in the 152-172 range for over one year. A break on either side is going to be significant but for now I expect the lower edge (152) to hold once again.